Second time unlucky for Amtek Auto as DVI withdraws resolution plan
Amtek Auto, which is undergoing insolvency proceeding, proved to be second time unlucky as successful resolution applicant Deccan Value Investors (DVI) has invoked force majeure clause citing deteriorating health of the auto sector post-Covid19 lockdown.
The US-based hedge fund run by Vinit Bodas has said that given the present situation, it might not be able to go ahead with its Rs 2,700 crore resolution plan which was approved by the Committee of Creditors by a vote share of 70.07% in February 2020. This was later approved by the National Company Law Tribunal (NCLT) in July 2020.
It must be reminded here that Deccan Value Investors in June had filed a petition with the Supreme Court seeking withdrawal of its offer. However, the apex court had dismissed the petition saying that the application made by the applicant for withdrawal of the offer is hereby rejected and in case he indulges in such kind of practice, it will be treated as contempt of this Court in view of the various orders passed by this Court at his instance.
This is the second time successful resolution of Amtek Auto falls through after London-based Liberty House Group, whose resolution plan was approved by the NCLT as early as July 2018, knowingly contravened the terms of the Resolution Plan and failed to implement the same.
After Liberty House’s failure to implement its resolution plan, the NCLT in February 2019 ordered fresh invitation for bids. Liberty House has offered to pay Rs 4,025 crore to acquire the Amtek Auto.
